Assessment of the banking system role in the area of social responsibility to reduce unemployment in Iran: Application of structural VAR (SVAR) in the calculation of the contemporaneous, long-term and dynamic effects

Banks and providers of public financial services are the most sensitive organizations in terms of social responsibility. bank has a social and legal obligation to respond to economic and social needs. The banking industry is also the point of reference for the social and economic development of any society. Accordingly, in this study, using a structural VAR model, the contemporaneous, long-term and dynamic effects of bank loans to the private sector on the unemployment rate has been studied during the period of 1967-2015. The results of the simulation of the contemporaneous impacts matrix indicate that a banking shock (as measured by a standard deviation) due to the provision of bank support facilities in the first period leads to a decrease of 0.062% in the unemployment rate, but based on the long-term impacts matrix estimation results, this banking shock does not have an impact on the unemployment rate in the long run. The estimation of the dynamic impacts of bank facilities also shows that, from the fifth period onwards, the dynamic impact of this banking shock will be eliminated. On this basis, it can be concluded that the support of banks from the economic sectors only leads to a reduction in unemployment in the short term and can’t have an impact on long-term employment. Therefore, it is suggested that, in order to ensure the social responsibility of the bank in terms of employment creation, the necessary advocacy and support principles of the nongovernmental sector, should be developed to influence long-term employment.